Which of the Following Is True of a Flexible Budget

Multiple Choice

Which of the following is true of a flexible budget?

A) It is prepared by large firms only.
B) It is used to measure whether or not a manager accomplishes his or her goals.
C) It is usually not a good choice for benchmarks while preparing a performance report.
D) It is a budget created in advance that is based on a particular level of activity.
E) It enables a firm to compute expected costs for a range of activity levels.